Selling and Buying A Home at the Same Time: 9 Expert Tips to Succeed
If you’re worn out by the intricate process of selling and buying a home at the same time, you aren’t alone! Buying and Selling a home simultaneously can be challenging even for the most skilful homeowners. It’s even worse in the current volatile market where the supply of homes is decreasing and the prices keep soaring.
However, waiting for this competitive real estate market to simmer down isn’t always wise. That’s because there’s an infamously low inventory of homes in Canada that’s projected to remain that way for months to come.
But that doesn’t necessarily mean that you should give up on buying and selling a new place. In fact, it’s the best time to capitalize on the current seller’s market and transition smoothly from the old house to a new one.
Here are 9 expert tips to help you succeed when selling and buying a home at the same time:
1. Consider the Sell-House-and-Rent-Back option
In a competitive housing market, many homebuyers are ready to make substantial concessions to get their dream homes. Some buyers might even settle for a sell-and-lease-back agreement.
That way, you can pay a negotiated fee (rent) and continue living in your old home after selling it. And if you’re selling to an investor, you can negotiate affordable rent payments (sometimes lower than your current mortgage payment) and a longer lease term.
Pro Tip: Leaseback agreements can be intricate, with vital financial, legal, and tax aspects involved. As such, you should seek professional help from your local real estate agent to ensure you have a carefully-crafted, win-win contract.
2. Short-Term Housing is a Great Option
Finding temporary housing is an excellent option when you want to sell and buy a home simultaneously. You could ask your family or friends to take you in. Alternatively, you can consider month-to-month rentals, furnished apartments, and vacation rentals- consider using a storage unit for your belongings, if space is a problem.
Pro Tip: The short-term housing option gives you a chance to learn more about the neighbourhood you’re interested in, resulting in a more informed home buying decision.
3. Sell Now (And Buy Later)!
To alleviate uncertainty and pressure of selling and buying a home at the same time, consider focusing on one exercise at a time.
Selling before buying your new home has several perks. For instance, you’ll have cash from the sale’s proceeds, which places you in a better position to buy your next home- after all cash is king in real estate transactions!
Pro Tip: Won’t I Be Trapped With Two Mortgages?
It’s true that there could be some type of overlap in the two mortgages when you buy and sell house at the same time.
However, note that carrying two mortgages requires you to pass Canada’s mortgage stress test, which might not be possible without proof of substantial income or a contract on your old home. But supposing you can secure the second mortgage, it’s wise to assess your budgets and the timeline you can afford paying both of them.
If you can’t secure two mortgages or are worried about the Canada’s mortgage stress test, then selling before buying could be the most viable option you have.
4. Prep Your Home for Sale
You can reduce the time a home sits on the market if you pay attention on the renovations and upgrades that matter the most.
For instance, you can clean, declutter, and depersonalize your home, add a fresh coat of paint, fix structural issues, and revamp your curb appeal. However, you shouldn’t focus on costly renovations and major remodelling projects since they have lower ROI.
Pro Tip: Our real estate agents can guide you on the renovations that are worth your money and time!
Check Also: How long does it take to sell a house
5. Put Your Paperwork in Order
By filing your paperwork early, you can save valuable time throughout the process. For instance, if you’ll need to secure a mortgage to make the purchase, you should get preapproved immediately to reduce the time it’ll take to approve your loan once you find the house.
Moreover, you should ensure that your old home’s documentation, such as upgrade permits, appliance warranties, and repair records are in order. Consequently, you’ll be prepared to answer all your potential buyer’s questions promptly.
6. Consider Conditional Contracts
It’s possible to add conditions, such as sale of property (SOP), in your contracts, which allows you to walk away from the deal if you haven’t sold your old home. However, this approach can fail, especially in a seller’s market where buyers are competing for homes.
Pro Tip: When dealing with the intricate home buying and selling process, it’s easy to be overwhelmed by emotions and stress. Our local real estate agents can advise you on the best real estate strategies and what’ll work in different market dynamics. We’ll also negotiate on your behalf to get the best deal possible.
7. Be Ready to Compromise
It’s common to be anxious about getting each detail right. But that isn’t usually necessary to sell or buy a home successfully, and compromising is often required.
As such, you should allow things to work out gradually. Moreover, with our team of real estate experts, you can rest assured that we have your back and will determine the details you should focus on.
8. Be Open to Unconventional Paths
Real estate trends and rules of thumb are typically projections, and not facts. So, if your home sale or search isn’t a replica of your friend’s experience, it doesn’t necessarily mean you’ll fail.
Seasonality market trends can influence sales in your area. For instance, the Canadian Real Estate Association has shown that the real estate market used to be competitive during the warmer months and would simmer down as winter approached.
However, market trends have changed in the past years, and you could even experience a delayed sale in the fall, summer, or spring.
Pro Tip: Every home transaction is unique, and some may follow non-traditional paths. Hence, it’s vital to talk to your local agent about your specific circumstances.
9. Seek Professional Help Early
It’s paramount to call your local real estate agents early in the process. Our experts will offer you advice on how to prep your home for sale while determining what you should look for when buying your next new place. Hence, you can make an informed decision when you find your dream home.
Call us today, and let’s ease your home selling stress and make your move smooth and seamless.
Get Personalized Advice from Your Real Estate Agent
While selling and buying a home at the same time or simultaneously can be stressful, it doesn’t have to be. The ideal way to ease the stress is by having a reliable and skillful agent by your side. Our experienced agents can evaluate your circumstances and offer you personalized advice that meets your specific needs.
Contact us today, and we’ll help you assess your options and determine the ideal way to buy and sell house at same time !